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Govt’s business tax break to boost NMW attendees

The Federal Government’s just-announced 30 per cent business tax break means that purchases of manufacturing-related products will become significantly cheaper for companies looking to invest in their future, say the organisers of 2009 National Manufacturing Week (NMW).

The timing of the tax break — for all investment purchases until June 30, 2009 — means that the NMW, to be held at the Melbourne Convention and Exhibition Centre from May 12-15, presents an opportunity for everyone in the manufacturing sector.

“Businesses looking to increase productivity, reduce costs and become more efficient will find NMW 2009 a perfect opportunity to look at the latest technology and innovations — and take advantage of the investment tax break,” said exhibition organiser, Reed Exhibitions’, exhibition manager Paul Baker.

“It will help reduce the cost of new equipment purchases for manufacturers, workshops and suppliers, with its timing — expiring on June 30 this year — providing another strong incentive to visit NMW.

“This government initiative gives everyone in the manufacturing sector a compelling reason to attend the show, providing one of the last — and best — opportunities to make investment decisions and place orders which will attract the allowance.”

The federal government’s $42 billion Nation Building and Jobs Plan announced on 5th February this year includes an investment tax break for all Australian businesses, designed to help boost business investment, bolster economic activity and support jobs.

Under the government’s plan (which was passed by the Senate on February 12) businesses — such as manufacturers, fabricators, workshops, warehouses and many others — will be able to claim a bonus deduction of 30 per cent for eligible assets costing $10,000 or more, which could include manufacturing, processing, electronic, IT and other capital equipment.

Small businesses with a turnover of $2 million a year or less are eligible for the tax break on items costing $1,000 or more.

To be eligible for the investment allowance, businesses must:

• acquire or start to hold the equipment under a contract entered into between December 13 2008 and the end of June 2009; and

• have it installed ready for use by the end of June 2010.

For eligible assets purchased between 1st July 2009 and 31st December 2009, the bonus deduction drops to 10 per cent.

These deductions are on top of the usual capital allowance deduction claimable for the asset as part of a business’s income tax return.

“We will have a number of exhibitors at NMW 2009 — including representatives of federal government agencies — who can advise visitors on just how the 30 per cent tax break incentive works and how it would apply to their businesses,” said Baker.

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